Green Furniture (GF) manufactures a variety of furniture for household use and just two items for office use: desks and cabinets. The production process for desks and cabinets is similar, although machines must be retooled for each product. Both materials and labour costs are directly traceable to individual products; however, overhead is a common cost and allocated using direct labour-hours as the allocation base. GFs accountant is considering the use of activity-based costing (ABC) and has suggested evaluating the system by applying it to the two office use products (desks and cabinets). The following data are available for a typical quarter.

Activity usage

Activity cost pool Activity base Activity rate Desks Cabinets

Parts receipts Number of parts $2.00 per part 2,800 parts 2,000 parts

Machining Machine-hours $10.00 per machine hour 285 machine hours 420 machine hrs

Assembly Units produced $1.80 per unit 1,400 units 2,000 units

Quality control Units tested $3.00 per unit 140 units 1,900 units

Direct materials $7,000 $4,000

Direct labour $16,800 $16,800

Each product consumed 840 direct labour-hours.

Determine the total manufacturing cost and cost per unit for each of the two product lines for the quarter, using activity-based costing to allocate overhead costs. (Round "Cost per unit" answers to 2 decimal places.)

Desks Cabinets

Total manufacturing cost

Cost per unit

Redo the above using direct labour-hours as the allocation base. (Round "Cost per unit" answers to 2 decimal places.)